The U.S. Department of Transportation has announced that it will save American taxpayers over $60 million by terminating a grant to fund a high-speed rail project in Texas. The grant, awarded to Amtrak for the Texas Central Railway project, has been deemed a waste of taxpayer funds and a distraction from Amtrak’s core mission by Transportation Secretary Sean Duffy.
The project, initially a private venture, saw cost estimates skyrocket, making it dependent on federal dollars and Amtrak for development. The Department of Transportation cited a capital cost of over $40 billion, making construction unrealistic and risky for taxpayers. Amtrak, which has been struggling with operational deficits, will now be able to focus on improving existing services.
The Federal Railroad Administration (FRA) and Amtrak have reached an agreement to terminate the grant, freeing up $60 million for other rail projects that support safe, efficient, and reliable transportation. FRA Chief Counsel Kyle Fields acknowledged the potential of connecting Dallas and Houston through passenger rail but stated that federalizing the Texas Central Railway proposal was not the best use of taxpayer funding.
Amtrak did not respond to requests for comment on the matter. The decision to end the project reflects a focus on efficiency and cost-saving measures within the transportation department under Secretary Duffy’s leadership. This move will allow for a reallocation of funds to support more viable rail projects that benefit taxpayers and the transportation system as a whole.
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